Europe’s Top50 Retailers: Delivery Trends To Look Out For

Aug 05, 2021

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The top 500 online retailers in 2020 made $304.45 billion in online sales last year, up 38.5% from $219.79 billion in 2019. 

Previously, we looked at different ways in which direct-to-consumer brands can improve their operational and experiential challenges when it comes to fulfillment, but what can we learn from leading retailers in the midst of a pandemic-driven boom in online shopping? 

In this article, we collaborated with RetailX to gather key insights on the e-commerce delivery offerings of the top 50 retailers in Europe. What are some of the most and least common delivery methods offered by leading retailers such as AmazonDecathlon and Tesco?

Key insights

‘Click and Collect’ is becoming a popular delivery method

Of the top 50 retailers in Europe, a popular delivery method is the ‘click and collect’ option with 73% of retailers offering this. The option allows shoppers to pick up their online orders from a physical location rather than having items delivered to their homes. The popularity of this option signals a trend towards alternative delivery methods as opposed to the traditional method of home delivery. 

Indeed, click and collect is likely to become an increasingly necessary part of the e-commerce offer in Europe. This was especially so after the pandemic as this option provided retailers with an opportunity to continue operations in a safe manner, such as IKEA Germany. With Europe having a forecasted click and collect turnover of $86.1 billion for 2023, click and collect is likely going to become a norm in the coming years.  

Only 38% of retailers offered next-day delivery, and 13% offered same-day delivery

This number is expected to rise with the increased investments into same-day delivery of consumer goods, increased adoption of e-commerce among European consumers, as well as express delivery in order to offer a better customer experience. These factors are expected to drive the express delivery market to reach a whopping $98 billion by 2027, up from its 2020 figure of $61 billion.

According to a report by Ecommerce News Europe, next-day delivery is considered important to shoppers. Within the UK, 45% of British shoppers state that next-day delivery increases their likelihood of purchasing from a merchant, yet only 66% of retailers provide this service. 

Likewise, same-day delivery is the most wanted and most expected feature in online shopping according to UK consumers. The push for same-day delivery would profoundly change e-commerce as it allows shoppers to have both the convenience of online retail along with the immediacy of physical retail stores.

For instance, leading marketplace eBay has been expanding its end-to-end fulfillment service to the UK after rolling out this service in Germany and China. This allows their UK merchants to offer shoppers faster delivery options and enhance their delivery experience.

Nominated-day and time delivery are the least common options offered

Nominated-day and nominated-time delivery options are only offered by 14% and 7% of retailers, making them some of the least popular options provided by retailers. 

Nominated-day and time delivery refer to how shoppers are given the option to choose a particular day and time they would like their items delivered to them at their convenience. With nominated-time deliveries being the least common option available, this indicates much room for growth in providing shoppers with more customized and advanced fulfillment options. 

According to a report by Summit, retailers that offer more precise delivery times see an increase in average basket value and frequency of orders. While more accurate delivery options require sizable capital investment, retailers can expect to see payoffs in the form of enhanced brand loyalty, retention rates, and ultimately, higher sales with a customer-first delivery experience. 

For more information on what the top retailers in Europe are doing, check out the report from RetailX right now!

About Retail X

RetailX is a research company that specializes in performance research and analysis for retailers and brands, sectors, markets, tools and people in multichannel retail and direct-to-consumer digital commerce. RetailX’s mission is to provide the data, analysis and insights to build successful and profitable businesses.

For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.

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